Cost of capital this potential purchaser

Reference no: EM13260701

You have a perpetuity that pays you $10000 per year. The TV advertisement says you can sell this income for "CASH TODAY". they offer you $77,000 for your perpetuity. What is the cost of capital this potential purchaser is applying to the proposed transaction?

Reference no: EM13260701

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Cost of capital this potential purchaser : You have a perpetuity that pays you $10000 per year. The TV advertisement says you can sell this income for "CASH TODAY". they offer you $77,000 for your perpetuity. What is the cost of capital this potential purchaser is applying to the proposed tra..

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